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If you’ve been offered a settlement agreement by your employer then there’s a number of reasons why you should obtain specialist legal advice on your agreement – one of these being that your solicitor will have the expert knowledge needed to negotiate your settlement agreement. Employment law solicitor Chris Hadrill takes a look at how a settlement agreement should and can be negotiated, with some practical tips

What is a settlement agreement?

A settlement agreement is a contract regulated by statute which allows for potential or existing legal proceedings (whether these are in the employment tribunal, county court, or high court) to be settled. If an employee signs a settlement agreement this normally means that they’re prevented from bringing any claims in the tribunal or court, whether the claim is for breach of contract, unfair dismissal, discrimination, failure to pay wages, or any other form of claim. Under the agreement, the employee will, however, be provided with some form of benefit for agreeing to waive their rights to bring such claims, with such benefit normally involving some form of monetary sum and the provision of a reference.

Do you have to sign your settlement agreement or can your negotiate it?

You certainly don’t have to sign your settlement agreement as it is and it is often (although not always) advisable that you push your employer (gently) to see how much you can potentially obtain from the negotiations. If you wish to negotiate your agreement then this can be done by one of two ways: you can either do it yourself or, alternatively, instruct a third party (such as a specialist employment solicitor) to do this for you. Which approach is best in the circumstances really depends upon a number of factors, such as the nature of your potential claims, whether you still have a good relationship with the management of the business, and whether you feel confident in doing so (among other things).

Tips and tactics for negotiating a settlement agreement

If you’re looking to negotiate your settlement agreement with your employer (or are looking to instruct a solicitor to do so for you), there are a number of helpful tactics and tips which might help you to get what you want. These include:

  1. Instructing a specialist solicitor to negotiate you or advise you on your claims – your employer will generally cover part – if not the whole – of the cost of doing so
  2. Research your potential claims and determine where your leverage is – if you look like you don’t know what you’re doing then your employer will take advantage of this
  3. Be aware that you potentially have a £30,000 tax-free allowance for your settlement agreement (depending upon the type of claims that are being settled) – take advantage of this if you can
  4. Bear in mind that there is a three months less one day limitation period for Employment Tribunal claims – if you miss this then you lose a great part of your leverage
  5. Employers often play ‘hard ball’ – don’t be intimidated if you get an aggressive response
  6. If you make a ‘counter-offer’ to your employer’s offer of the settlement agreement then your employer is entitled (potentially) to withdraw from negotiations – this isn’t likely but bear it in mind as a possibility

If you’ve got any further questions then please don’t hesitate to contact Chris Hadrill or one of our specialist employment team on 020 3397 3603

About Chris Hadrill

Chris is a specialist employment lawyer at Redmans. He specialises in contentious and non-contentious employment matters, including breach of contract claims, compromise agreements and Employment Tribunal cases. He writes on employment law matters on a variety of websites, including Direct 2 Lawyers, Lawontheweb.co.uk, LegalVoice, the Justice Gap and his own blog. Contact Chris by emailing him at chadrill@redmans.co.uk

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Testimonials

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Mohamed F

Excellent and professional solicitors, highly recommended

Posted 18 hours ago

Anonymous

Redmans Solicitors provided a professional and prompt service in dealing with my settlement agreement. They used their experience to negotiate a better deal for which I am grateful for. I highly recommend their services.

Posted 3 days ago

Cheryl R

Very efficient and friendly lawyers. I have used Redmans twice now and Chris Hadrill has been amazing to work with. Would highly recommend Redmans.

Posted 3 days ago

Anonymous

I found Redmans Solicitors to be extremely professional, dealing with my questions and concerns quickly and in detail. I would have no hesitation in recommending Redmans Solicitors to anyone.

Posted 3 days ago

Anonymous

I requested Redmans services on a redundancy case. Both Chris and Rana were great, thoughtful, very professional and responded quickly. They were very clear throughout the entire process, regarding the process and my options and I couldn't feel I had better legal advice for my case. Overall excellent service and I would certainly recommend and use their services again.

Posted 1 week ago

Anonymous

Responsive, patient, thorough and personable - an excellent service.

Posted 1 week ago

Anonymous

The team at Redmans, Chris Hadrill and Sacha Barrett were always very helpful and had expert knowledge to assist me during my employment law matter, I would not hesitate to recommend them to all!

Posted 1 week ago

Arun T

Chris was punctual, attentive and accurate. He answered my questions with clarity and avoided dubiosity. I would recommend him to anyone seeking legal advice within his remit.

Posted 1 week ago

Yulian Z

Great service

Posted 1 week ago

Anonymous

Excellent, professional service and a speedy resolution. Many thanks

Posted 1 week ago

Taral P

Sacha and Chris were both very helpful in closing out my matter. Sacha was very clear in helping me understanding the documents I needed reviewing, providing a professional service throughout.

Posted 1 week ago

Anonymous

Really pleased with the swift and professional service from Redmans. They provided very clear advice and helped conclude my matter with the minimum of stress or delay.

Posted 1 week ago

Matthew L

Redmans were very quick to respond to my initial enquiry, and provided me with a very effective and efficient service, generating a most satisfactory outcome. I would definitely use them again if the need arose.

Posted 1 week ago

Anonymous

First rate service. Warm and friendly whilst exceptionally efficient at the same time. I would highly recommend them.

Posted 1 week ago

Anonymous

Professional and helpful. Thorough and supportive.

Posted 1 week ago

Richard A

Excellent service, prompt replies, great advice

Posted 1 week ago

Anonymous

Very professional services

Posted 1 week ago

Margaret

Redmans Solicitors took a lot of the worry away and were very thoughtful and meticulous in their dealings with my case , thank you very mush , great service and a great job

Posted 1 month ago

Mark B

Prompt efficient service. Hourly, and part thereof, billing got a bit stressful at times - as opposed to flat fee - made me think twice about sending an email or making a quick call when I had a query because it would have eaten up minutes from my budget. But happy with the legal service I received overall and would recommend.

Posted 1 month ago

Anonymous

Chris Hadrill has provided a truly wonderful service and was willing to lend his support and expertise at a time when other solicitors, only wanted to discuss their fees! A clear thinking and down to earth professional, Chris can be trusted to listen carefully to your matter, cut through the fog, and advise you on the best (and most realistic) way forward, saving you time, money and heartache. It will be helpful if you first get your ducks in a row in terms of documents / evidence etc. and then contact Chris, (that’s what we did) as this will help your matter to be dealt with faster. The more organised and together you are the more successful you will be. You'll be fine with Chris, I highly recommend him. Good luck!

Posted 1 month ago

Richard v

Excellent Service

Posted 2 months ago